Arkansas Code § 23-101-104 - Prohibited Coverages

(a) Creditor-placed insurance coverage shall not include:

(1) Coverage for the cost of repossession;

(2) Skip, confiscation, and conversion coverage;

(3) Coverage for payment of mechanics' or other liens that do not arise from a covered loss occurrence;

(4) Coverage that requires a debtor's insurance deductible to be less than two hundred fifty dollars ($250); or

(5) Coverage that is broader than the insurance coverages that meet the minimum insurance requirements of the credit agreement.

(b) Nothing in this section shall be deemed to prohibit the issuance of a separate policy or endorsement providing the coverages listed in subsection (a) of this section. However, no charge shall be passed along to the debtor for the coverages.

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Last modified: November 15, 2016